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Legislative Changes Affecting Salary Administration, 88th Legislature

FPP F.021

ERS, TRS and ORP Retirement Rates for Fiscal 2024 and Fiscal 2025

ERS Retirement Rates for Fiscal 2024 and Fiscal 2025

The employee contribution rates for the following plans will not change for fiscal 2024 or 2025:

  • Employees Retirement System of Texas (ERS)
  • Law Enforcement and Custodial Officer Supplemental (LECOS) Retirement Fund
  • Judicial Retirement System Plan 1 (JRS1)
    – and –
  • Judicial Retirement System Plan 2 (JRS2)

The state contributions for LECOS and JRS2 are increasing while the state contribution for ERS remains the same.

The table below outlines the rates effective Sept. 1, 2023, through Aug. 31, 2025.

Retirement Plan Employee Contribution Rate State Contribution Rate1
Fiscal 2024 Fiscal 2025 Fiscal 2024 Fiscal 2025
ERS Groups 1-32 9.5% 9.5% 9.5% 9.5%
LECOS Groups 1-32 0.5% 0.5% 1.75% 1.75%
ERS Group 43 6.0% 6.0% 9.5% 9.5%
LECOS Group 43 2.0% 2.0% 1.75% 1.75%
Judicial Retirement Plan 1 9.5% 9.5% 0.0% 0.0%
Judicial Retirement Plan 24 9.5% 9.5% 19.25% 19.25%
  • 1 This rate is pursuant to House Bill 1, Article I, Employees Retirement System Riders 4, 5 and 6.
  • 2 This includes members of the Legislature covered by ERS. These rates are applicable to employees who were members of ERS before Sept. 1, 2022.
  • 3 These rates are for the cash balance retirement program created by Senate Bill 321, 87th Legislature, for employees, including members of the Legislature, hired on or after Sept. 1, 2022.
  • 4 These rates are not applicable to the new cash balance retirement program in Judicial Retirement System Plan 2 created by Senate Bill 1245 for judges and justices who take office on or after Sept. 1, 2024.

The payroll retirement contribution will continue to be paid by agencies at the rate of 0.5 percent of base salary for all employees who are members of the retirement system. It will be paid from the agencies’ budgets.

TRS Retirement Rates for Fiscal 2024 and Fiscal 2025

For employees covered by Teacher Retirement System of Texas (TRS), both the employee and the state contribution rate will increase to 8.25 percent for fiscal 2024 and 2025.

Optional Retirement Program (ORP) Rates for Fiscal 2024 and Fiscal 2025

For employees participating in the Optional Retirement Program (ORP), the state contribution rate will remain at 6.6 percent for both fiscal 2024 and fiscal 2025. Employers are authorized to use local funds or other sources of funds to supplement the General Revenue Fund appropriation at a rate up to 1.9 percent. The employee contribution rate will remain at 6.65 percent for both fiscal 2024 and fiscal 2025.